TLDR
- Broadcom is in early-stage talks to line up more than $50 billion in debt financing tied to OpenAI’s custom chip orders.
- The next phase of funding could total around $30 billion, according to sources close to the matter.
- Apollo Global Management and Blackstone are reportedly among the lenders being considered.
- The money would back Broadcom and OpenAI’s joint chip effort, internally called Nexus.
- Oracle is pursuing a similar lending arrangement to cover its own AI chip orders.
Broadcom (AVGO) stock edged up 0.19% Thursday after news broke of a fresh financing push connected to OpenAI. The company is working on a debt package that could exceed $50 billion.
Oracle (ORCL) stock dropped 0.84% on the same day. Oracle is chasing its own financing arrangement for chip purchases, separate from Broadcom’s effort.
Talks between Broadcom and OpenAI are still early. Nothing has been finalized, and the structure of the deal could still shift.
The discussions were first reported by Bloomberg and the Wall Street Journal. People familiar with the matter say the next round could land near $30 billion.
Apollo Global Management and Blackstone are reportedly in the mix as potential lenders. Both firms already have ties to Broadcom’s prior AI financing work.
This wouldn’t be Broadcom’s first major debt raise this year. A $42 billion tranche tied to a separate Anthropic deal began circulating to banks last week.
Blackstone is heading up an $18 billion slice of that Anthropic package. It’s putting in $9 billion of its own capital.
What Broadcom and OpenAI Are Building
The two companies have partnered on custom AI chips since October 2025. The work falls under OpenAI’s internal Nexus initiative.
Two chip designs are involved, nicknamed JalapeƱo and Serrano. The goal is to roll out 10 gigawatts of these chips by late 2029.
Custom chips give OpenAI a way to reduce reliance on standard GPU suppliers. They also deepen Broadcom’s role as a key hardware partner for one of AI’s biggest spenders.
The Reason Behind the Borrowing
AI infrastructure is expensive to build well before it earns anything back. Debt financing helps close that gap for companies like OpenAI.
Borrowing lets firms pay for chips immediately while spreading repayment over years. It’s becoming a common approach across the AI sector.
SpaceX, for instance, is reportedly in talks to borrow $40 billion for Nvidia chips. That deal isn’t expected to wrap up until 2027.
Broadcom already runs a financing platform alongside Apollo and Blackstone. Set up in June, it’s meant to support more than 20 gigawatts of AI computing capacity through 2028.
That platform covers AI developers including Anthropic and OpenAI. Meeting its full scope is expected to cost hundreds of billions of dollars.
Back in August, Broadcom was already in discussions over a facility topping $60 billion tied to Anthropic and other partners. This latest OpenAI talk builds on that pattern.
Broadcom and OpenAI both declined to comment when asked about the current talks. No closing date has been set.
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